Map: These are Lennar’s Texas apartments that could hit the market

Firm shopping 11,000-unit apartment portfolio amid market headwinds

Map of Lennar’s Texas Multifamily Holdings
Lennar’s Stuart Miller with 1109 N Interstate Hwy 35 in Austin and 2000 Taylor Street in Houston (Google Maps, Getty, Taylor Heights)

Lennar is known for its homebuilding chops, but over the years, it has built a large portfolio of multifamily rentals across the country. Now, as the firm and multifamily operators nationally grapple with high interest rates, Lennar is considering selling its more than 11,000-apartment portfolio, which could be worth an estimated $4.5 billion

Last year, Lennar rebranded its multifamily vertical from LMC to Quarterra. The brand’s Texas holdings total five projects and one unfinished development across Dallas, Houston and Austin. They range between 260 and 387 units, and all have higher-end finishes and amenities. 

Some, like the 23 in Dallas and Avenir in Austin, are in cities’ downtown, while others, including the Maddox, at 1330 Park West Green Drive in Katy, sit further out on the urban periphery. 

Here’s a map of Quarterra’s multifamily projects in Texas:

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Despite Lennar’s size — it’s market cap exceeds $46 billion — it has not been impervious to the problems that have sunk smaller multifamily operators in Texas this year. 

The company’s multifamily holdings took an operating loss of $12 million in the fourth quarter this year, compared to operating earnings of $15 million in the same period last year. It expects to lose $25 million on multifamily in the first quarter of 2024.

“It’s kind of a suboptimal time to be thinking about a sale, although who knows where interest rates go, that could change quickly,” Stuart Miller, Lennar’s co-CEO, said in the firm’s fourth quarter earnings call.

Miller confirmed on the call that Lennar has hired JLL to shop the properties.

A spokesperson for Lennar did not respond to a request for comment.

Despite the distress facing many Texas multifamily owners, and slowed deal volume, some see opportunities in the market. There is still great uncertainty about asset prices, further complicating deals. A portfolio as large as Lennar’s would only further complicate that calculus, though it could give a nationwide window into fair pricing going forward. 

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